Model Adaptation

Definition ∞ Model adaptation involves adjusting or refining an existing analytical framework or predictive algorithm to better suit new data, changing market conditions, or specific use cases. This process ensures that models remain relevant and accurate over time. It is essential for maintaining the efficacy of data-driven decision-making. Successful adaptation improves predictive power.
Context ∞ In cryptocurrency markets, model adaptation is frequently discussed in news related to quantitative trading strategies, risk assessment, and price prediction, given the rapid evolution of digital asset data. Debates often center on how quickly models can adjust to novel market behaviors or regulatory shifts. A critical future development involves automated and continuous model adaptation techniques to navigate the dynamic crypto landscape effectively.